Bitcoin Cash Price Analysis: BCH Flirts Around The $500 Psychological Level
Daily Bitcoin Cash BCH Price Forecast
- Bitcoin Cash faces strong resistance at $510.
- The 50-bar and 20-bar SMA have charted the bearish cross in the 4-hour time frame.
Bitcoin Cash bears started the days strong, having dropped the price of Bitcoin Cash from $600 to $455. The buyers have then managed to take back control and push the BCH price back to $500. Let’s see what’s going on behind the scenes.
BCH Bounces Up From The $455 Support Wall
Bitcoin Cash buyers have recognized the $455 support wall as the ideal entry point into the market. The price of Bitcoin Cash has since jumped up to the $500 level. The RSI is trending in the neutral zone, which shows that the buyers still have enough room to grow the price.
Image: BCH/USD daily chart
As of now, the bulls face strong resistance at $510. Previously at this level, 70,300 addresses had purchased $1.25 million BCH tokens. Upon breaking above this level, the Bitcoin fork should reach the $600 psychological level.
However, when we reduce our time frame to 4-hour from 1-day, we can see that it will be a little overoptimistic to expect these price jumps any time soon. The Bollinger Band has constricted considerably, which shows that the price of Bitcoin Cash is going through low volatility, consolidation period.
Image: BCH/USD 4-hour chart
Along with that, the number of daily active addresses entering the protocol has reduced considerably. On January 9, BCH had 70,630 new addresses. This has reduced to 38,00 on January 13.
Bitcoin Cash Price is Expected To Hit These Levels
All these indicators tell us that we shouldn’t expect BCH to make any wild movements any time soon. Expect BCH to trend horizontally around the $500 level.